Tesla shareholders endorse record $56 billion pay package for Elon Musk, approve move to Texas

In a significant victory for Elon Musk, Tesla shareholders have endorsed a $56 billion pay package for the CEO and approved the relocation of the company’s legal headquarters to Texas.

The decision comes after a Delaware judge had previously blocked the compensation plan, deeming it unfair to shareholders. Musk, who campaigned fervently for the payout, expressed his gratitude to the gathered shareholders in Texas, exclaiming, “Hot damn, I love you guys.” However, despite the shareholder vote, legal experts, including Mathieu Shapiro of Obermayer Rebmann Maxwell & Hippel, told UK state media that the court’s previous ruling might not be easily overturned by the re-vote, casting uncertainty on the reinstatement of Musk’s pay package.

The contentious pay plan, which grants Musk rights to around 300 million shares of Tesla, had faced criticism over concerns of excessive board loyalty to Musk and the fairness of the process. Musk’s announcement of moving Tesla’s legal headquarters to Texas followed the Delaware court’s initial rejection of his pay deal.

Musk managed to rally significant shareholder support, including a substantial number of individual investors, leading to a 3% rise in Tesla’s stock post-announcement. While the final legal outcome remains uncertain, the shareholder vote highlights the strong backing Musk enjoys from Tesla’s investor base and underscores the ongoing debate over executive compensation and corporate governance.